Charles River Laboratories Reports Increase in Sales despite Softening Customer Spending


By Will Feuer

Charles River Laboratories, a contract pharmaceutical research company, has reported a rise in sales in the third quarter, even as customer spending declined.

The company’s third-quarter earnings stood at $87.4 million, or $1.69 per share, compared to $96.5 million, or $1.88 per share, during the same period last year.

Adjusted earnings, excluding one-time items, were recorded at $2.72 per share, surpassing analysts’ expectations of $2.36 per share.

Revenue experienced an almost 4% increase to reach $1.03 billion, exceeding analysts’ projections of $1.0 billion.

While Chief Executive James Foster acknowledged a decline in customer spending, he noted that there are indications of more favorable demand trends emerging.

To align with weaker demand, Charles River is implementing cost-cutting measures. The company’s profit was impacted by costs related to site-consolidation and other non-operating expenses.

The research models and services unit witnessed a revenue growth of approximately 4%, while the discovery and safety assessment unit reported a 7% increase in revenue. However, the manufacturing solutions segment experienced a decline of 7% in revenue.

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